chapter 11 Flashcards
(10 cards)
Why do many negotiations fail?
Many negotiations fail because cognitive mistakes lead negotiators to overlook opportunities. While some negotiations fail due to the absence of a bargaining zone, others with potential bargaining zones fail due to errors in judgment, such as cognitive biases.
What is the “Fixed-Pie Myth,” and how does it affect negotiations?
The “Fixed-Pie Myth” is the belief that a negotiation is a zero-sum game where one side’s gain is the other’s loss. This approach leads to viewing the negotiation as purely competitive, which often inhibits the creation of value and collaboration, ultimately limiting mutually beneficial solutions.
How can the “Fixed-Pie” mentality devalue concessions?
With a fixed-pie mentality, negotiators may undervalue concessions made by the other party, interpreting them as signs that the issue is less important to the other side, which discourages reciprocation and openness to trade-offs.
Explain how framing influences negotiator judgment.
Framing affects negotiator judgment by altering how outcomes are perceived, whether as gains or losses. A positively framed negotiation tends to encourage concessions and compromise, while a negative frame often makes parties more defensive and less flexible.
What are “anchors” in negotiation, and why are they important?
Anchors are reference points used to frame offers and expectations. They can help shape perceptions and can influence decisions by setting a standard for evaluating offers. Anchors may include past prices, target amounts, or initial offers. Effective anchors can encourage a positive frame and increase chances for compromise.
How can a negotiator prevent escalation of conflict?
To prevent escalation, a negotiator can avoid forcing the other party into making rigid statements or taking inflexible positions, which may lead to a defensive stance. Seeking creative ways for the opponent to concede gracefully can also help de-escalate tension and facilitate a resolution.
What is the risk of “overestimating your value” in negotiation?
Overestimating one’s value can lead to unrealistic expectations, causing negotiators to miss out on viable agreements. For example, declining a job offer while waiting for a better one may backfire if that better offer doesn’t come through, demonstrating the importance of realistic self-assessment.
What is “self-serving bias,” and how can it affect negotiations?
Self-serving bias is the tendency to interpret fairness in ways that favor oneself. In negotiation, this bias may prevent reaching an agreement because each side’s perception of a fair outcome is skewed, leading to an impasse even when both genuinely aim for fairness.
Why can the first offer in negotiation have a powerful “anchoring” effect?
The first offer can anchor the negotiation by setting a reference point, especially when there’s ambiguity about the bargaining zone. If the other party lacks detailed knowledge, the initial offer may strongly influence their perception of value, shaping the negotiation dynamics.
How does the specificity of a first offer impact its effectiveness as an anchor?
A precise offer (e.g., €680 instead of a rounded €700) tends to work better as an anchor because it appears more thoughtful and calculated, making it more influential in framing the perceived value of the offer.
